CORPORATE SOCIAL RESPONSIBILITY OF PSUS
As per the existing guidelines on
Corporate Social Responsibility (CSR) issued by the Department of Public
Enterprises (DPE) in April, 2010, all profit making Central Public Sector
Enterprises (CPSEs), including Maharatna CPSEs are required to select CSR
activities which are aligned with their Business strategy and to undertake them
in a project mode. Giving this information in written reply to a question in Lok
Sabha the Minister of Heavy Industries and Public Enterprises, Shri Praful
Patel, said that CPSEs are mandated to spend their funds on CSR projects
selected by them with the approval of their respective Boards. All profit
making CPSEs are required to allocate budget mandatorily through a Board
Resolution as percentage of net profit (previous year) in the following manner:
Type of CPSEs Net Profit (Previous Year)
|
Expenditure range for CSR in a Financial Year
(% of profit)
|
(i) Less than Rs. 100 crore
|
3% – 5%
|
(ii) Rs.100 crore to Rs. 500 crore
|
2% – 3%
(Subject to a Minimum of Rs. 3 crore)
|
(iii)Rs.500 crore and above
|
0.5% – 2%
|
Shri Patel informed the House
that the loss making CPSEs are not mandated to earmark specific funding for CSR
activities. CSR Budget is fixed for each financial year and this fund does not
lapse. It is transferred to a CSR funds in which it accumulates. Implementation
of CSR activities of CPSEs is monitored by the administrative Ministries/
Departments of concerned CPSEs. State/UT/PSU-wise information of CSR work
undertaken by the CPSEs, including Maharatna CPSEs and the number of persons
benefited there from, is not maintained centrally in the Department of Public
Enterprises. CPSEs are free to take up CSR Projects for upliftment of weaker
sections, and backward districts, the Minister said in his reply.
Source: Ministry of Heavy
Industries & Public Enterprises
With Regards
CS Prakash Verma
Email: Prkverma@gmail.com